Federal Housing Administration (FHA)

FEDERAL HOUSING ADMINISTRATION (FHA) MORTGAGE INSURANCE PROGRAM

Brief description : FHA insurance program provides mortgage insurance for homebuyers, allowing an alternative to conventional loan products that often require large down payments. FHA loans have small down payment requirements and partner well with most downpayment assistance, MBOH regular bond and set-aside loan programs.

Borrower Eligibility Criteria:
  • Income limits (click here)
  • First-time homebuyer(s); waived for targeted areas
  • Home must be primary residence for the life of the loan
  • No asset limitations


  • Property Criteria:
     Purchase Price Limit of $237,031
    Single Family home, townhouse, or condo, existing home or new construction
    Manufactured home on permanent foundation allowed if detitled and post -1976
    Limit of 15% use for Business
    Land limited to 35% of value of property
    Maximum parcel size of 40 acres, with no subdivision of land possible

    Loan Criteria:
     Loan limit of $200,160
    30-year fixed rate loan
    IRS recapture potential depending upon program used
    Buy existing or build new home
    Hazard insurance $1,000 deductible all peril; escrow for tax and insurance

    Underwriting Criteria:
     Per FHA guidelines
    Need any multi-lot/repair issues on appraisal addressed before closing

    Down payment Sources:
    Must be FHA approved sources only-approved non-profits require at least 3% from borrower, instrumentality of government can provide 100% financing

    Mortgage Insurance Information:
    Requires FHA coverage

    Lender Reservation and loan info:
    No origination or discount points, MBOH purchases loan at 102%
    Rate can be reduced 0.125% if buyer chooses to pay 2 points at closing and MBOH purchases loan at par
    Reservations valid 120 days for existing homes/ 180 days for new construction
    A 0.25% fee charged for extensions, 0.50% for cancellation
    Need any multi-lot/repair issues on appraisal addressed before closing

Reservations Process:

PREFER
 Input on Lender On Line web based reservation system

OR
 Fax reservation to MBOH including:
 Reservation cover sheet and required documentation listed

updated 5/9/2007

This is a summary of the MBOH program only. For a complete copy of the terms and conditions see Mortgage Purchase and Servicing Guide and the Terms and Conditions of the set-aside